Dear Mayor,

Yesterday, the League of Municipalities spoke in favor of a citizens’ special convention for property tax reform. The hearing of the Assembly State Government Committee opened discussion on A-5269, which would authorize a special convention for property tax reform, and ACR-25, which would allow the convention to propose statutory changes.

We commend the sponsors, Assembly Majority Leader Joe Roberts and Assemblywoman Linda Greenstein on A-5269 and Assemblyman Roberts on ACR-25, for their leadership and political courage in advancing this matter.

Mayor Gary Passanante of Somerdale and Mayor Jo-Anne Schubert of South Bound Brook presented the League’s testimony. Both served as members of the Governor’s Property Tax Reform Convention Task Force, which drafted the recommendations that served as the basis for A-5269 and ACR-25. Mayor Passanante is a member of the League of Municipalities’ Executive Board and the Chair of our Property Tax Reform Committee. Mayor Schubert is the League’s Immediate Past President.

Though strong supporters of the citizens’ convention approach to property tax reform, we told the Committee that we can only support A-5269 if language is added to Section 2 to prevent the Convention from recommending a state-wide equalized property tax to fund education. Though no vote was taken, the sponsors and the Committee seemed receptive to our request.

Another area that needs to be addressed concerns the scope of the Convention’s deliberations. Specifically, the question is, “Should the Convention be allowed to consider spending issues?”

In order to assure the continuation of the benefits of tax reform, our answer is “Yes.” Accordingly, we agree with certain aspects of Senate Minority Leader Lance’s comments on this. For example, he has written, “For the convention to succeed in achieving the goal of proposing significant and enduring property tax reform the delegates must be entrusted to examine – within prescribed limits – those matters that propel the continued escalation of the property tax burden.” The durability of the benefits of revenue reform could depend on such considerations.

We would, further, agree with the Senator that such considerations “should not include divisive social issues.” That is why we have consistently supported a “limited” convention.

But the longevity of the benefits of reform might require a recommendation relating to any repeat of past State spending decisions, which have under funded statutory municipal and school district property tax relief programs, in addition to statutory incentive programs to encourage regionalization and shared services by counties, municipalities and school districts.

We believe that the sponsors and the members of the Committee will work to address this concern, as well.

In his testimony, Mayor Passanante declared, “All who truly yearn for property tax reform are delighted to see the beginning of the process that will eventually let the people of New Jersey participate in the rehabilitation of this antiquated system that no longer works for the state or its citizens. … Now … the work of the Legislature begins. The people of New Jersey expect the Senate and General Assembly to act on a property tax convention bill. They need nothing more than that. They deserve nothing less.”

Mayor Schubert observed that, “… no matter how much you think government should spend; no matter where you think money is needed or money is wasted; no matter what the appropriate level of revenue we need to meet our responsibilities to the people who elected us; the simple fact of the matter is that there has to be a fairer way of raising it.”

In summation, Mayor Passanante said, “The property tax is not a North, or a South, or a Central Jersey problem. It is not an urban, or suburban or rural issue. From Cape May Point to High Point, from the Hudson River to the Delaware Bay, the property tax is a New Jersey problem that can, and will, be solved by the people whom it plagues, if they are given the chance. ”

In the course of the hearing, powerful opponents of a property tax reform convention urged the Committee to deny New Jersey citizens the opportunity to voice their will on this question. They include the New Jersey Education Association and the State Business and Industry Association. These defenders of the status quo will attempt to convince Legislators to let this historic opportunity slip away. We cannot let them succeed.

If you support the Convention initiative for property tax reform, and you have not yet adopted a Resolution of Support, please consider the Draft available on our website at http://www.njslom.org/ml113004-resolution.html.

For more information on this issue, contact Jon Moran at 609-695-3481, ext. 21. For copies of the bills, contact Suzanne DeLany at 609-695-3481, ext. 14.

Trenton Times Article Feb. 11, 2005
Trenton Times Article Jan. 14, 2005
Philadelphia Inquirer Article Jan. 18, 2005